FAR and DFARS › DFARS Part 216: Types of Contracts › Subpart 216.3

DFARS 216.301-3 Limitations.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This DFARS section limits the use of certain cost-reimbursement contract types for work tied to a military construction project or a military family housing project. Contracting officers may not use cost-plus-fixed-fee, cost-plus-award-fee, or cost-plus-incentive-fee contracts for those projects, even during a declared war or a presidential national emergency involving the Armed Forces.

Applies to: Contracts connected with a military construction project or a military family housing project

What it requires

  • Do not use cost-plus-fixed-fee, cost-plus-award-fee, or cost-plus-incentive-fee contract types for these projects

Key terms: cost-plus-fixed-fee · cost-plus-award-fee · cost-plus-incentive-fee · military construction project · military family housing project

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

For contracts in connection with a military construction project or a military family housing project, contracting officers shall not use cost-plus-fixed-fee, cost-plus-award-fee, or cost-plus-incentive-fee contract types (10 U.S.C. 3323). This applies notwithstanding a declaration of war or the declaration by the President of a national emergency under section 201 of the National Emergencies Act (50 U.S.C. 1621) that includes the use of the Armed Forces.

Sections that refer to it

  • 216.306 Cost-plus-fixed-fee contracts.
  • 234.004 Acquisition strategy.
  • 236.215 Special procedures for cost-reimbursement contracts for construction.
  • 236.271 Cost-plus-fixed-fee contracts.

← 216.203-4-70 Additional provisions and clauses. · 216.306 Cost-plus-fixed-fee contracts. →

Rule changes for DFARS Part 216

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 216.301-3 Limitations · SpendQuery